Easy Solutions To Dealing With Credit Cards
With the way the economy is these days, you really need to be smart about how you spend every penny. Credit cards are a great way to make purchases you may not otherwise be able to, but when not used properly, they can get you into financial trouble real quickly. Read on for some great tips for using your credit cards wisely.
You should try and limit the number of credit cards that are in your name. Too many credit cards is not good for your credit score. Having several different cards can also make it more difficult to keep track of your finances from month to month. Try and keep your credit card count between two and four.
Try to avoid applying for in-store credit cards because they charge much higher fees than traditional credit cards. Most merchants accept all of the major credit cards so it would be a much better idea for you to make purchases with one of those instead of applying for a card with the merchant.
If you choose that you no longer want to use a particular credit card, be sure to pay it off, and cancel it. You should close the account so you can no longer be tempted to charge anything on it. It will help you to lower your amount of available debt. This is helpful in the situation, that you are applying for any kind of a loan.
Always know what your utilization ratio is on your credit cards. This is the amount of debt that is on the card versus your credit limit. For instance, if the limit on your card is $500 and you have a balance of $250, you are using 50% of your limit. It is recommended to keep your utilization ratio of around 30%, in order to keep your credit rating good.
Avoid the temptation to take out loans on your credit cards. It may seem to be the only way to get something paid for, but you must look into other options. Many financial advisers will tell you this and there is a reason for it. It could cost you your credit ratings later.
Before you decide on a new credit card and Credit Union, be careful to read the fine print. Credit card companies have been in business for many years now, and know of ways to make more money at your expense. Be sure to read the contract in full, before signing to be sure that you are not agreeing to something that will harm you in the future.
Avoid being the victim of credit card fraud by keeping your credit card safe at all times. Pay special attention to your card when you are using it at a store. Double check to make sure you have returned your card to your wallet or purse, when the purchase is finished.
As stated previously, you really have no choice but to be a smart consumer who does his or her homework in this economy. Everything just seems so unpredictable and precarious that the slightest change could topple any person’s financial world. Hopefully, this article has you on the right path in terms of using credit cards the right way!
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